Crane Co. has agreed to acquire Trillium Flow Technologies’ U.S. pump business for approximately $240 million, expanding its presence in the municipal water and wastewater markets.

Stamford, Connecticut-based Crane said the transaction includes the Floway, Wemco, Roto-Jet and WSP brands. The acquired business, part of First Reserve-backed Trillium Flow Technologies, is expected to generate approximately $115 million in revenue in 2026.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals and other customary closing conditions.

Crane plans to add the business to its Process Flow Technologies segment. The acquired brands provide pumps used primarily in municipal water and wastewater applications.

The deal also gives Crane a larger installed base of pumping equipment that requires service, repairs, retrofits, and replacements throughout its operating life. That creates an aftermarket business extending beyond the original equipment sale.

“These brands are an excellent strategic fit that enhances the quality, durability, and growth profile of our Process Flow Technologies segment,” Crane CEO Alex Alcala said.

Alcala said the acquisition will broaden Crane’s position in engineered pump technology while increasing its exposure to municipal water and wastewater spending.

“It expands our position in highly engineered pump technologies, increases our exposure to resilient water and wastewater markets, and brings a large installed base that generates recurring aftermarket demand,” Alcala said.

Crane also said it plans to combine the acquired brands and technologies with its existing product development, operating, and commercial capabilities.

For distributors serving municipal water systems, wastewater facilities, utilities and related industrial customers, the transaction brings four established pump brands under Crane’s Process Flow Technologies business. The size of the installed base could create additional demand for replacement pumps, components, and other aftermarket products.

Crane did not disclose whether the acquisition will result in changes to existing distributor agreements, sales territories, or channel strategy.

Crane has approximately 8,300 employees in the Americas, Europe, the Middle East, Asia, and Australia. The company operates through two primary business segments: Aerospace & Advanced Technologies and Process Flow Technologies.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Crane to Buy Trillium’s U.S. Pump Business for $240 Million appeared first on Distribution Strategy Group.

Salsify and the Industry Data Exchange Association, or IDEA, have launched an integration that allows electrical manufacturers to use Salsify’s product information management system to send product data directly to IDEA Connector.

The companies announced the integration on Sept. 16. It replaces a process that could require manufacturers to export, reformat, and manually transfer product information before submitting it to IDEA Connector.

IDEA Connector provides standardized manufacturer product information to subscribing electrical distributors. Under the new integration, manufacturers using Salsify can map their product information to IDEA’s requirements and send validated updates directly from Salsify’s product information management, or PIM, system.

The connection is available through an early access program for Salsify customers.

The integration uses two prebuilt channels: one for core product information and another for category-specific attributes. Manufacturers map their data into the established structure once. Updates that meet applicable requirements can then flow directly into IDEA Connector without requiring a custom Salsify support process, according to the companies.

For distributors, the change could affect the product information feeding ecommerce sites, enterprise resource planning systems, quoting tools and other applications used to sell and manage products.

The announcement comes as electrical manufacturers and distributors continue to address gaps in product information.

IDEA’s data standards are designed to give electrical manufacturers and distributors a common structure for exchanging product information. Manufacturers still must ensure that their information meets IDEA’s formatting and attribute requirements before it is published.

The Salsify integration is intended to automate more of that process.

Incomplete or inconsistent product attributes can create problems downstream for distributors, particularly when the information is used for ecommerce, product search, quoting and other digital sales processes.

 The Salsify channel also helps Atkore keep its product attributes aligned with IDEA Connector requirements.

Before the integration, manufacturers using Salsify either had to reformat exports to meet IDEA requirements or work with Salsify support personnel to build and maintain a custom channel as those requirements changed, according to the companies.

The new connection is designed to eliminate those additional steps by connecting the systems directly.

Michael Wentz, IDEA’s vice president of sales and marketing, said the integration is intended to reduce work for manufacturers while preserving the standards distributors use.

The integration also comes as distributors and manufacturers put more emphasis on structured product data for ecommerce, search, and artificial intelligence applications.

AI-powered search and purchasing tools can use product specifications, dimensions, applications, and other attributes to identify and compare products. Incomplete or inconsistent underlying data can limit those systems’ ability to return useful results.

Salsify is positioning the IDEA integration partly around that shift, although the immediate purpose of the connection is to automate the exchange of standardized product information between manufacturers and distributors.

The integration is intended to help manufacturers keep their information aligned with IDEA standards while reducing the manual work involved in delivering it to distributors.

For electrical distributors, the integration does not replace IDEA Connector or establish a new product data standard. Instead, it changes how manufacturers using Salsify can submit information to the existing IDEA system.

The potential benefit will depend in part on how broadly manufacturers adopt the connection and whether it results in more complete and timely product information. Salsify and IDEA did not disclose how many manufacturers are participating in the early access program or provide data on how much time the integration could save.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Salsify, IDEA Link Product Data Systems for Electrical Distribution appeared first on Distribution Strategy Group.

Ingram Micro is betting that artificial intelligence and automation can reshape how one of the world’s largest technology distributors sells, prices products, serves customers and connects suppliers with the market.

The company outlined the strategy at its inaugural Capital Markets Day on Sept. 15 at NYSE Texas in Dallas, describing a transition from a traditional technology distributor into what it calls an “intelligent operating system” for the business-to-business technology market.

At the center of the strategy is Xvantage, Ingram Micro’s AI-powered digital platform. The company says Xvantage incorporates more than 400 AI and machine-learning models and brings together hardware, cloud subscriptions, personalized recommendations, pricing, order tracking, billing, and other functions.

CEO Paul Bay said Ingram Micro intends to use its scale, data and supplier and customer relationships to connect supply and demand more efficiently.

“Today, we are entering a new chapter as we build on those strengths to create the industry’s B2B intelligent operating system at scale,” Bay said.

The strategy is significant for the broader distribution industry because Ingram Micro isn’t positioning AI primarily as an employee productivity tool. Management is attempting to embed AI and automation into core distribution processes and tie those investments directly to sales growth, operating efficiency, and customer retention.

Ingram Micro’s presentation described the shift more simply as its journey “from distributor to intelligent B2B operating system.”

Ingram Micro targets 4% to 6% annual sales growth

Ingram Micro also put financial targets around the strategy.

For fiscal 2026 through fiscal 2029, the company is targeting compound annual net sales growth of about 4% to 6% and gross profit growth of about 5% to 7%.

Non-GAAP net income is expected to increase at a compound annual rate of about 11% to 13%, more than twice the midpoint of the company’s sales growth target. Ingram Micro also expects annual operating expenses to equal about 4.4% to 4.8% of sales.

The presentation provides additional historical context. Ingram Micro estimates net sales increased at a compound annual rate of 6% to 7% from fiscal 2023 through fiscal 2026, while gross profit grew 3% to 4% and non-GAAP net income increased 8% to 9%.

Chief financial officer Mike Zilis said the objective is for gross profit to increase faster than sales while the company becomes more efficient.

“Our long-term financial framework is built on clear objectives of growing gross profit faster than net sales, driving further operating expense efficiency and leverage,” Zilis said.

The targets are forecasts rather than guaranteed results. Ingram Micro said actual results could differ because of economic conditions, competition, supply constraints, tariffs and trade policy, geopolitical developments, and the company’s ability to continue developing and deploying Xvantage, among other risks.

The problem: Distribution is getting more complicated

Ingram Micro’s case for AI starts with a familiar distribution problem: Too much work still moves through disconnected companies, systems, and employees.

The Capital Markets Day presentation said a single quote can involve three companies, 12 people and 72 hours.

Ingram Micro argues that complexity increases as distributors add cloud providers, hyperscalers, services and AI to the traditional relationship among manufacturers, distributors, resellers, and end customers.

“Complexity is rising faster than the ecosystem can absorb it,” the company said in its presentation.

Management’s conclusion is that adding more individual systems isn’t enough.

“We can’t solve complexity by adding more complexity,” another slide said.

The company contrasted the traditional distribution model, designed primarily to move products through a linear value chain, with a technology market in which information increasingly must move among vendors, customers, logistics providers, cloud companies, financing providers, and service organizations.

Ingram Micro wants Xvantage to become the common technology layer connecting those activities.

Xvantage moves deeper into distribution operations

The scope of Xvantage is broader than ecommerce.

Ingram Micro says the platform combines more than 400 AI and machine-learning models and can use the company’s data to predict, recommend, and automate actions.

“The next era of value creation will be defined by intelligence,” said Sanjib Sahoo, president of Ingram Micro’s Global Platform Group.

“Our platform can predict, recommend, automate, and increasingly take action,” Sahoo said.

Ingram Micro’s 2025 annual report provides additional context for the scale of the technology investment. The company said Xvantage incorporated more than 42 million lines of code and 400 AI and machine-learning models. It said the platform was designed to simplify, automate, digitize, and scale the delivery of products and services.

The company says Xvantage combines areas including pricing, logistics, services, and AI while connecting suppliers and customers. Ingram Micro also offers supply chain, financial, marketing and IT asset disposition services through its broader platform.

That potentially changes the role of the distributor. Instead of operating primarily as an intermediary that buys, inventories, and resells products, Ingram Micro is positioning itself as a platform coordinating transactions and information across the technology supply chain.

Scale gives Ingram Micro a large data base

Ingram Micro says it serves more than 165,000 customers and more than 1,500 vendors worldwide and can reach 90% of the world’s population. Its portfolio spans hardware, software, cloud, and services.

The Capital Markets Day presentation also says Ingram Micro has more than 1,200 software engineers, more than 1,000 technical engineers, thousands of technical certifications and more than 200 cloud solutions.

The company’s strategy is to use the information generated across those relationships to improve recommendations and decisions and automate transactions.

Ingram Micro calls the combination of Xvantage and its data a competitive advantage.

The company quoted Steven Dickens of HyperFrame Research as saying Ingram Micro is building a “defensive moat” around its partner ecosystem by integrating reseller workflows into Xvantage.

The potential advantage is straightforward: The more quoting, ordering, pricing, configuration, and other work customers conduct through Xvantage, the more deeply the platform becomes integrated into their everyday operations.

AI is intended to drive sales as well as efficiency

Ingram Micro’s strategy isn’t limited to reducing operating costs.

Management identified AI, cloud, advanced solutions, and lifecycle services as major growth areas through fiscal 2029.

For suppliers, the company says its platform can support demand generation, extend the reach of multivendor solutions, and provide access to small and midsized customers.

For customers, Ingram Micro says automation can allow them to scale with less additional operating expense while product recommendations and expanded offerings can increase sales opportunities.

The company is also expanding services around the traditional product transaction.

Its portfolio includes professional services, financing, managed IT services, technical centers of excellence and lifecycle services. Lifecycle services include supply chain services, IT asset disposition, and reverse logistics.

That gives Ingram Micro additional ways to generate revenue throughout the life of a technology product rather than relying solely on the original product sale.

Technology suppliers see a changing distribution role

Several major Ingram Micro suppliers provided comments for the Capital Markets Day presentation describing a broader role for the distributor.

Cisco chief sales officer Oliver Tuszik said the relationship is evolving “beyond traditional distribution” as AI and security create additional opportunities for Cisco and its channel partners.

Microsoft chief partner officer Nicole Dezen pointed to Ingram Micro’s combination of global reach and data.

“What differentiates Ingram Micro is their ability to combine global reach with actionable intelligence,” Dezen said.

Hewlett Packard Enterprise CEO Antonio Neri said Ingram Micro’s global footprint and technical expertise help partners reach new opportunities and bring technology to customers faster.

CDW CEO Christine Leahy said Ingram Micro’s operational and digital capabilities have helped CDW operate more efficiently and scale its business.

A different benchmark for distributor AI

The broader takeaway for distributors is less about Ingram Micro’s specific technology stack than about how management is measuring the transformation.

The company isn’t defining AI progress by the number of pilots underway or employees using generative AI.

Instead, Ingram Micro is tying its technology strategy to core operating measures: faster sales cycles, more automation, greater supplier reach, increased customer spending, services growth, and improved operating efficiency.

The financial framework makes that connection explicit. Ingram Micro expects sales to grow 4% to 6% annually from fiscal 2026 through fiscal 2029, but it is targeting 5% to 7% gross profit growth and 11% to 13% non-GAAP net income growth.

That doesn’t mean Ingram Micro’s model transfers directly to every wholesale market. Technology distribution is particularly suited to digital platforms because of its large product catalogs, cloud services, complex configurations, and extensive supplier networks.

But the operating problems Ingram Micro is targeting are common across distribution: slow quoting, manual handoffs, complicated pricing, disconnected data, and employees spending time moving information among systems.

Ingram Micro’s approach is to build intelligence into those processes rather than simply adding standalone AI applications.

The company’s strategy amounts to a broader bet about the future of distribution: Scale, inventory and logistics remain important, but management believes competitive advantage increasingly will depend on how effectively a distributor connects its data, suppliers, customers and workflows and turns that information into faster decisions and automated actions.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Ingram Micro Puts AI at Center of Three-Year Distribution Growth Strategy appeared first on Distribution Strategy Group.

Office Depot is retiring the ODP name from its corporate and business-to-business operations, rebranding The ODP Group as Office Depot Group and ODP Business Solutions as Office Depot Business.

CEO Craig Gunckel announced the changes Sept. 15, saying the company is returning to the Office Depot name across the organization.

“We have a new name!” Gunckel wrote on LinkedIn. “We are no longer The ODP Group. And our distribution business, previously ODP Business Solutions, is now Office Depot Business.”

The move puts the Office Depot name behind the company’s retail and B2B operations. Office Depot Business sells office supplies, furniture, technology, cleaning and breakroom products and other workplace supplies to businesses and institutional customers.

The company’s B2B website has already adopted the Office Depot Business name.

Gunckel said the change is intended to create a clearer identity across the company.

“It’s the same Office Depot you already know from our stores—now the name behind everything we do,” he said.

The rebranding comes nine months after Atlas Holdings completed its approximately $1 billion acquisition of The ODP Corporation on Dec. 10, 2025, taking the company private. Gunckel became CEO when the transaction closed, succeeding Gerry P. Smith.

At the time, the company said it employed more than 16,000 people and operated Office Depot and OfficeMax stores along with a B2B distribution network across North America.

The latest change effectively removes the ODP name from the company’s corporate and B2B identities and extends the better-known Office Depot brand to the distribution business.

Gunckel said the move represents more than a corporate name change.

“This represents much more than a simple name change,” he said.

Office Depot has more than 40 years of operating history. Its business now combines an omnichannel retail operation with a B2B distribution platform serving businesses and institutional customers.

The B2B operation extends beyond traditional office supplies into categories including technology, furniture, cleaning, breakroom, and other workplace products.

That makes the rebranding particularly relevant to distributors. Office Depot Business competes for corporate and institutional purchasing across product categories served by office products, janitorial and sanitation, technology, and other business products distributors.

Under Atlas, management has been developing strategies for the company’s retail and B2B businesses, with an emphasis on customer service, local market execution, and growth.

The new branding gives those operations a common identity rather than maintaining separate Office Depot and ODP names.

“Office Depot is a brand with more than 40 years of history behind it—the kind of recognition that can’t be built overnight, only earned over decades by showing up for our customers and communities,” Gunckel said.

The rebranding marks another step in Office Depot’s transition under Atlas as the privately held company works to strengthen its retail and B2B distribution operations.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Office Depot Drops ODP Name, Rebrands B2B Distribution Business appeared first on Distribution Strategy Group.

United Natural Foods Inc. is expanding artificial intelligence, automation, and other technology across its distribution network as the company increases investment in supply chain operations following a return to profitability in fiscal 2026.

The Providence, Rhode Island-based distributor plans to spend about $300 million in fiscal 2027 on capital and cloud implementation projects, including targeted automation, enterprise resource planning deployment, and other technology initiatives.

The spending follows a fiscal year in which UNFI completed the rollout of an AI-powered supply chain and procurement planning platform across its distribution centers, expanded automation at its Joliet, Illinois, distribution center, and deployed lean daily management at 44 distribution centers.

UNFI CEO Sandy Douglas told analysts on the company’s fourth-quarter earnings call that those investments are central to the distributor’s effort to improve its operating performance.

“We also completed the rollout of our AI-powered supply chain and procurement planning platform to all DCs in our network,” Douglas said. The technology is “helping to steadily improve fill rates and inventory management,” he said.

UNFI’s investments come as the company reported lower sales but sharply improved bottom-line results.

Fourth-quarter net sales declined 0.7% to $7.64 billion from $7.70 billion a year earlier. UNFI reported net income of $35 million, compared with a net loss of $87 million in the year-earlier quarter. Because the company moved from a loss to a profit, UNFI reports the year-over-year percentage change in net income as not meaningful.

For the full fiscal year ended Aug. 1, net sales declined 2% to $31.15 billion from $31.78 billion. Net income was $84 million, compared with a $118 million net loss in fiscal 2025. Here again, a percentage increase in net income is not meaningful because UNFI moved from a loss to a profit.

The company’s natural products business moved in the opposite direction from overall sales. Fourth-quarter natural products sales increased 6.6% to $4.26 billion, while full-year natural products sales increased 7% to $17.13 billion. Conventional products sales fell 8.6% in the quarter and 11.5% for the year.

UNFI said fourth-quarter sales were affected by planned distribution network changes and the end of temporary project work. Management said underlying wholesale sales grew at a low single-digit rate after accounting for those factors and the comparison with the previous year’s cybersecurity incident.

Douglas said UNFI is concentrating on two areas: adding value for customers and suppliers and making the company more efficient.

“We are improving effectiveness and efficiency across the business through next-generation supply chain, technology and productivity initiatives,” Douglas said. Those initiatives are “steadily improving safety, quality and delivery accuracy for our partners while reducing our operating costs.”

AI moves into inventory and procurement

UNFI’s AI strategy is increasingly focused on operational problems that directly affect product availability and inventory.

The company has implemented RELEX across its distribution system and is using AI to improve purchasing, inventory planning, and fulfillment.

Douglas said fill rates remain one of UNFI’s biggest opportunities for improvement, particularly in natural products, where the number of products, slower-moving items and frequent introductions make inventory management more complicated than in conventional grocery.

“We consider improving it to be at the top of the most important things we can do for our customers,” Douglas said of fill rates.

The objective, he said, is to understand demand, ordering patterns and promotions while working with suppliers to position the right amount of inventory.

UNFI is also using its technology investments to support those decisions.

Douglas said the company is using RELEX “to leverage AI to make sure that we are continuing to order and fulfill in the most technology-supported way.”

“We are making some progress, but we continue to see it as the biggest improvement opportunity we are working on,” he said.

UNFI also added AI-enabled features to its UNFI Insights platform during fiscal 2026. Douglas said the additions are intended “to make it easier for our suppliers to assess store-level performance, improve demand planning and achieve their goals.”

Automation expands in Joliet

Automation is also becoming a larger part of UNFI’s distribution center strategy.

During the fourth quarter, the company consolidated its Racine, Wisconsin, operation into its expanded Joliet distribution center, which UNFI equipped with full-case automation.

President and chief operating officer Matteo Tarditi said the project is part of a broader strategy that combines automation with lean management, technology, and engineering standards.

“Automation is inside a suite of capabilities and functionalities that we have to become more effective and efficient,” Tarditi told analysts.

UNFI is looking for opportunities to modernize its distribution network by moving into larger facilities and adding technology where management believes the investment can support customer growth.

Tarditi compared the Racine-to-Joliet transition with an earlier distribution center consolidation in which UNFI moved operations into a larger, highly automated facility.

“That is the same playbook that we are playing with the Racine-to-Joliet transfer,” Tarditi said.

He cautioned that the Joliet transition remains in its preliminary stages.

“As with every transfer, there are a little bit of growing pains,” Tarditi said. “We are very aware of that, and we are working very hard to fix them.”

UNFI said it has already seen broader improvements across its distribution network. The company recorded its fourth consecutive quarter of year-over-year gains in fill rates, on-time deliveries, and throughput during the fourth quarter.

Lean management moves to next phase

UNFI has also completed the initial deployment of lean daily management at 44 distribution centers and is preparing to move the program into a second phase.

Tarditi said the first stage has produced “green shoots of improvements in fill rates, on-time delivery, throughput,” but added that UNFI still sees “a very large opportunity in front of us.”

The next phase will focus more heavily on management routines, problem-solving, data management, and continuous improvement.

Tarditi said teams at the 44 distribution centers are already meeting to review operating measures and that the company now wants to go deeper into identifying problems and developing corrective actions.

The second focus will be continuous improvement, including eliminating waste and increasing operating efficiency, he said.

UNFI has not disclosed which distribution centers will receive the next major automation investments.

Douglas said the company has a multiyear technology and operations road map but is not ready to provide details.

“With each passing implementation, whether it is technology like RELEX or Samsara going systemwide last year, we are growing in our confidence relative to the ability to put technology and lean and process improvement together to drive capability,” Douglas said.

UNFI plans about $300 million in fiscal 2027 spending

UNFI expects approximately $300 million in capital and cloud implementation spending in fiscal 2027, up from $217 million in capital expenditures in fiscal 2026. The planned investments include targeted automation, ERP deployment, and broader technology initiatives.

Tarditi said the company intends to move deliberately rather than deploy new technology across the network at once.

“We will take a methodical paced approach to technology investments,” he said, “focusing on targeted implementations first, then a broader deployment.”

For fiscal 2027, UNFI expects sales of $31.2 billion to $31.8 billion and net income of $105 million to $145 million. The company expects sales to remain under pressure early in the year as it finishes cycling previous distribution network changes, with a return to growth expected later in the fiscal year.

Fuel costs are another focus as UNFI looks for additional distribution efficiencies.

Tarditi said the company is using fuel hedges and contractual mechanisms with customers and suppliers to offset some of the pressure. But he said the company’s most important response is reducing fuel consumption through better transportation planning.

“The most important is a continuous focus on route optimization,” Tarditi said.

The goal, he said, is to “continue to reduce miles per delivery and optimize routes so the whole system benefits from lower fuel consumption.”

The investments show UNFI increasingly tying AI and automation to specific distribution measures rather than treating the technologies as stand-alone projects. Fill rates, inventory management, on-time deliveries, warehouse throughput, and miles per delivery are among the measures management says it is targeting as the company puts more technology into its distribution network.

Do not miss any content from Distribution Strategy Group. Join our list.

The post UNFI Expands AI and Automation Across Food Distribution Network appeared first on Distribution Strategy Group.

U.S. manufacturers grew more optimistic about their business prospects in the third quarter, with expectations for sales, production, hiring and capital investment all improving from three months earlier, according to a new survey from the National Association of Manufacturers.

The NAM Manufacturers’ Outlook Survey found 78.9% of respondents were  positive about their company’s outlook, up from 74.2% in the second quarter. The reading was the highest since the second quarter of 2022 and topped the survey’s historical average of 74.3%.

The survey, conducted Aug. 11-27, included responses from 220 manufacturers. Small manufacturers accounted for 18.6% of respondents, medium-sized manufacturers 45% and large manufacturers 32.3%. The remaining 4.1% did not disclose their size.

The more optimistic outlook was reflected across several measures of expected business activity.

Manufacturers expect sales to increase 4.3% over the next 12 months, up from a 3.3% forecast in the second quarter. Expected production growth increased to 3.8% from 3%, while projected full-time employment growth rose to 1.8% from 1%.

Sales expectations reached a four-year high. About 72% of manufacturers expect sales to increase during the next four quarters, including 50.5%, which anticipate growth of at least 5%. Just 8.3% expect sales to decline, while 20.2% expect no change. Medium-sized and large manufacturers forecast sales growth of 4.4%, compared with 3.5% among small manufacturers.

Production expectations also reached a four-year high. About 67% of respondents expect production to increase during the next year, while 8.7% anticipate a decline and 23.9% expect output to remain about the same.

Capital spending plans strengthened as well. Manufacturers expect capital investment to increase 2.6% during the next 12 months, up from 1.8% in the second quarter and the strongest forecast in four years. Half, 49.3%, expect to increase capital spending, compared with 37.1% in the previous quarter. Another 39.4% expect spending to remain unchanged, while 11.3% anticipate reductions.

The combination of higher sales, production and capital spending expectations could support demand for distributors supplying machinery, electrical equipment, automation products, fabricated metals and maintenance, repair, and operations products.

Cost pressures, however, remain widespread.

Increased raw material costs were cited by 80.8% of manufacturers as a current business challenge, making it the most frequently cited concern. Rising health care and insurance costs followed at 72.3%, with trade uncertainty at 62.4%, attracting and retaining workers at 54.9%, transportation and logistics costs at 52.1% and supply chain challenges at 44.6%. Respondents could select more than one challenge.

Manufacturers expect raw material prices and other input costs to increase an average 5% during the next 12 months, although that is down from the 5.8% increase forecast in the second quarter. 90% expect input costs to rise, and 48.1% anticipate increases of more than 5%.

At the same time, manufacturers expect prices for their own products to increase 3.7%, down from the 4.2% forecast in the second quarter. About 77% expect to raise prices during the next year, while only 1.9% anticipate price declines.

The survey also points to continued demand for industrial machinery despite uncertainty surrounding trade.

Among manufacturers that gave a definitive answer, 63% said they plan to import industrial machinery, including parts and components, during the next year to support existing or planned manufacturing operations. Among those planning imports, 69.2% said the equipment would be used to upgrade or replace existing machinery, while 63.6% cited new or expanded manufacturing operations. 32% expect to import parts or tools for maintenance and repair.

Trade uncertainty is already affecting some of those purchasing decisions. Among manufacturers that adjusted their industrial machinery import strategies, 41.3% said they sourced machinery from alternative suppliers or countries. Another 36.5% delayed planned orders, 19.1% decreased orders and 12.7% canceled planned orders.

Transportation costs are another continuing pressure on manufacturers.

99% of respondents said their companies or suppliers use trucks. Ocean or maritime transportation was used by 57.1%, air cargo by 37.7%, rail by 28.8% and intermodal transportation by 21.7%.

Among manufacturers reporting transportation problems, 77.3% cited freight rates as affecting their ability to move goods efficiently and 74.1% cited fuel costs. Driver availability was cited by 29.7%.

Manufacturers also indicated they plan to continue investing in their digital operations. About 31% said they will place significant emphasis on digital transformation during the next 12 months, and another 30.1% said they will place moderate emphasis on it. About 11% said they plan to put no emphasis on digital transformation.

The third quarter results point to manufacturers preparing for stronger business activity while continuing to manage substantial cost and supply chain pressures. For distributors, rising production, capital spending and machinery investment could provide opportunities for higher demand, but customers are likely to remain focused on pricing, sourcing flexibility, inventory management, and transportation costs.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Manufacturers Turn More Bullish as Sales, Production, and Investment Outlooks Rise appeared first on Distribution Strategy Group.

Amazon Business is expanding its purchasing and accounting capabilities with a new reconciliation report designed to give business customers more detailed information about orders, invoices, shipments, charges and refunds.

The company said Sept. 11 that the enhanced report includes 75 data columns, up from 34, with 41 new fields. Finance teams and account administrators can use the report to reconcile invoice and credit card purchases and download the information as a CSV file.

The expanded report provides transaction details down to individual products and shipments, including ship dates, shipment status, product descriptions and United Nations Standard Products and Services Code classifications.

Customers can also see detailed pricing information, including unit prices, shipping charges, promotions, fees, tax rates and net totals. Invoice and credit memo information includes document dates, statement numbers, payment due dates and document status.

Amazon Business also added more information covering returns and refunds, sellers and purchasing savings. Organizations can incorporate their own accounting and procurement information, including general ledger codes, cost centers, departments, project codes and locations, along with as many as 13 custom fields.

Account administrators can customize the reports by selecting and arranging columns and can save report configurations for future use.

The enhanced reconciliation report is available in the U.S., United Kingdom, France, Germany, Italy and Spain. Amazon Business said it plans to continue the worldwide rollout through 2026.

Customers can continue accessing previously created reconciliation report templates through Oct. 31, according to the company.

The expansion illustrates how Amazon Business is competing beyond product assortment and fulfillment. By adding more purchasing, accounting and transaction-management capabilities, the company is seeking to become more deeply embedded in customers’ procurement processes.

For traditional distributors, that shifts part of the competitive battle to the back office. Business customers increasingly expect suppliers to provide detailed transaction data, purchasing controls and reporting that can reduce the administrative work required to buy and account for products.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Amazon Business Adds More Purchasing and Reconciliation Tools appeared first on Distribution Strategy Group.

Distributors and parts suppliers are expanding their warehouse networks in September, adding hundreds of thousands square feet of capacity as broader investment in distribution infrastructure remains strong.

Saval Foods broke ground on a 230,000-square-foot headquarters and distribution center in Maryland. Winsupply acquired additional property next to a distribution center it is expanding in Ohio. AGCO began operating a 115,000-square-foot parts distribution center in California, while Komatsu opened a 135,000-square-foot parts facility in Canada.

The projects are moving forward against a backdrop of continued warehouse investment across North America.

Industrial SalesLeads, a Jacksonville, Florida-based firm that tracks industrial capital projects, said Sept. 4 that its research team identified 199 new planned distribution and supply chain projects in August. That was up from 193 in July and 185 in June and matched April for the highest monthly total reported by the firm this year.

Of the August projects, 179 involved industrial warehouses and 20 involved distribution or fulfillment centers, according to Industrial SalesLeads.

The firm also identified 66 projects involving new construction, 39 expansions and 102 renovations or equipment upgrades. Those categories can overlap because an individual project may include more than one type of work.

Texas led the states tracked by the firm with 20 projects, followed by North Carolina with 12, Florida with 11, New York with 10 and California with nine.

The activity provides a broader backdrop for several distribution projects moving ahead in September.

Saval Foods breaks ground on 230,000-square-foot facility

Saval Foods broke ground on a 230,000-square-foot headquarters and distribution center in Columbia, Maryland, as the family-owned foodservice distributor prepares for additional growth.

The company announced the project on Sept. 9 in conjunction with Maryland Gov. Wes Moore’s office and Howard Hughes Communities.

The Columbia Gateway facility will bring together Saval’s corporate operations, Saval Foodservice and 1932 Specialty Produce & Meat.

Saval said the project will provide additional capacity while allowing it to consolidate operations.

“Bringing our operations together under one roof will allow us to work more efficiently, strengthen collaboration across our teams and create the space we need to continue growing,” CEO Paul Saval said.

Saval said it plans to retain 391 full-time employees and add 107 full-time jobs in Maryland over the next four years.

Founded in 1932, Saval supplies restaurants, delicatessens, caterers and other foodservice customers with products including meat, produce and seafood, according to the company.

Winsupply adds property as national expansion continues

Winsupply added another piece to its distribution network Sept. 3 when it announced the purchase of a 48,000-square-foot building in Miami Township, Ohio.

The building at 9370 Byers Road is adjacent to Winsupply’s Dayton-area distribution center, where the company is adding 200,000 square feet.

Winsupply said the acquisition supports its broader distribution network expansion.

“The purchase aligns well with our continued growth to support courageous entrepreneurs,” Winsupply President Jeff Dice said.

The Ohio project is part of a larger expansion program announced earlier this year.

Winsupply said in March that it planned to add approximately 1.6 million square feet of distribution capacity over two years through projects in Dayton, Oklahoma City, and Atlanta.

The company said on Sept. 3 that it had purchased a 1.17 million-square-foot distribution center in Atlanta that will become its eighth distribution center.

Winsupply distributes plumbing, industrial pipe, valves and fittings, heating, ventilation, and air conditioning, electrical, waterworks and other products through its network of locally operated companies.

AGCO more than doubles West Coast parts capacity

AGCO began operating a new 115,000-square-foot parts distribution center in Visalia, California, on Sept. 1, more than doubling the agricultural equipment manufacturer’s West Coast parts capacity.

The company announced the opening of Aug. 31. The new facility replaces its previous Visalia operation.

AGCO said the additional space will allow it to carry a broader selection of replacement parts closer to dealers and farmers across the western United States.

The facility also incorporates warehouse automation, high-density storage, and forecasting technology.

“We reimagined every step of how parts move, from receiving to shipping, and built the systems to match, including advanced automation, smarter forecasting and a deeper local inventory,” Stefan Caspari, AGCO senior vice president of customer success and North American agriculture, said.

The distribution center includes vertical lift modules, narrow-aisle racking and dedicated storage for oversized components. It supports AGCO brands including Fendt and Massey Ferguson.

AGCO said a formal grand opening is planned for the first quarter of 2027.

Komatsu doubles Canadian warehouse capacity

Komatsu opened a 135,000-square-foot parts distribution center in St. Albert, Alberta, on Sept. 10, doubling the equipment manufacturer’s previous warehouse capacity in Canada.

The Edmonton area facility supports dealers serving the mining, construction, and forestry industries.

Komatsu said the additional capacity will allow it to stock a broader assortment of fast-moving and strategically important parts closer to dealers and customers. The company said the facility can provide 24-hour parts delivery to dealers throughout much of Western Canada.

The operation also incorporates Komatsu’s global planning and warehouse management systems, updated warehouse layouts, automation, and new equipment.

“The new Edmonton parts distribution center enhances our ability to deliver the right parts at the right time, helping customers stay productive while supporting future growth across Canada,” Komatsu North America CEO Rod Bull said.

Investment goes beyond adding square footage

The Industrial SalesLeads data suggests warehouse investment extends beyond constructing larger buildings.

Of the 199 planned projects the firm identified in August, 102 involved renovations or equipment upgrades, compared with 66 involving new construction and 39 involving expansions. Because projects can fall into multiple categories, those figures should not be added together to calculate the total number of projects.

Industrial SalesLeads also identified several large projects in the planning stages, including a 1.5 million-square-foot distribution center in Wallkill, New York; a 1 million-square-foot distribution and office facility in Apple Valley, California; and a 552,000-square-foot distribution center in Louisville, Kentucky.

The firm did not identify the companies behind those projects in its public report. It said the projects were still seeking approval.

That makes them different from the Saval, Winsupply, AGCO and Komatsu projects, which have reached the groundbreaking, acquisition, expansion, or operating stage.

But the projects collectively point to continued investment in the physical infrastructure behind distribution.

Saval is consolidating operations while adding capacity. Winsupply is expanding its national distribution network. AGCO has more than doubled its West Coast parts capacity. Komatsu has doubled its Canadian warehouse capacity.

At the same time, the Industrial SalesLeads numbers indicate significant investment in renovations and equipment upgrades, suggesting companies are putting money not only into additional square footage but also into the operations inside their facilities.

For distributors, the message is clear: Warehouses remain a central part of the growth strategy. Companies are adding capacity, repositioning inventory and upgrading fulfillment operations as they compete on product availability, delivery speed, and customer service.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Distributors Keep Adding Distribution Capacity in September appeared first on Distribution Strategy Group.

The federal government has sued Minneapolis-based Gold Star Distribution Inc. and its owner after an FDA inspection documented rodents, birds, animal waste, and other sanitation problems at the company’s warehouse.

The United States filed the lawsuit Sept. 11 in federal court in Minnesota against Gold Star. The government is seeking a court order to stop violations of federal food and drug requirements, according to the federal court docket.

The lawsuit follows an FDA inspection of Gold Star’s warehouse at 1000 Humboldt Ave. N. in Minneapolis in late 2025. The FDA described the operation as a multi-commodity warehouse storing products including food and beverages, infant formula, cosmetics, pet food, and medical products.

FDA inspectors documented extensive evidence of rodent activity. The agency’s inspection report describes live rodents, dead rodents, apparent rodent droppings, urine stains, gnawed packaging, and nesting material in the facility. Inspectors also documented apparent rodent activity around rice and other food products.

The FDA also documented bird activity and apparent bird waste in areas where products were stored.

Gold Star announced a broad recall Dec. 26, 2025, covering FDA-regulated products held at the facility, including drugs, medical devices, cosmetics, dietary supplements, human food, and pet food. The FDA said the recall involved potential Salmonella contamination, rodent and bird contamination, and unsanitary storage conditions.

The FDA said it determined that the warehouse had rodent waste, rodent urine, and bird droppings in areas where regulated products were stored. The agency said the conditions created a risk that products could have been contaminated with filth or harmful microorganisms. No illnesses had been reported when the recall was announced.

The FDA’s original recall notice lists affected retailers primarily in Minnesota and identifies locations in Indianapolis and Fargo, North Dakota.

Separate FDA records show Gold Star recalled medical devices including bandages and first-aid kits, toothbrushes, pregnancy tests, and feminine hygiene products. The FDA records cite potential exposure to rodents and rodent activity at the distribution center as the reason for those recalls.

The problems documented in 2025 were not the company’s first involving federal regulators.

In 2018, the FDA warned Gold Star after an inspection found what the agency described as serious violations of federal food-safety requirements at the same Minneapolis warehouse. The agency documented rodent activity and other sanitation problems and warned the company that failure to make corrections could lead to additional federal action.

The federal government filed its lawsuit eight years later. The publicly available federal docket confirms the complaint was filed Sept. 11 against Gold Star.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Federal Government Sues Minneapolis Distributor Following FDA Warehouse Findings appeared first on Distribution Strategy Group.

Southern Glazer’s Wine & Spirits has agreed to pay $12.5 million and strengthen its compliance controls to resolve a federal investigation into years of improper payments and benefits provided to employees of alcohol retailers.

The nationwide wine and spirits distributor entered into a non-prosecution agreement with federal prosecutors, the U.S. Attorney’s Office for the Northern District of California announced Sept. 10.

Southern Glazer’s admitted and acknowledged responsibility for acts committed by company employees, according to a statement of facts accompanying the agreement.

Federal authorities said Southern Glazer’s executives and employees provided improper payments and benefits to employees of alcohol retailers, including chain grocery stores, in connection with the promotion, purchase, maintenance and placement of products distributed by the company.

The benefits included cash payments, prepaid gift cards, flights, golf trips, resort stays and luxury goods, according to the Justice Department. Employees used third-party vendors and false invoices to conceal the payments.

Several California-based Southern Glazer’s executives, including several vice presidents, were directly involved in the conduct and participated in falsifying documents, federal prosecutors said.

The Alcohol and Tobacco Tax and Trade Bureau described the conduct as commercial bribery and said Southern Glazer’s employees bribed retail employees to induce them to purchase alcohol distributed by the company.

Under the agreement, Southern Glazer’s will pay $12.5 million to the U.S. government. The company also agreed to strengthen compliance with federal and state laws prohibiting bribery and improper payments and continue cooperating with the government in related criminal prosecutions, including cases involving current or former employees. The agreement runs for two years.

Southern Glazer’s itself was not criminally charged. Under the non-prosecution agreement, federal prosecutors agreed not to prosecute the company for the conduct covered by the agreement if Southern Glazer’s fulfills its obligations.

TTB also agreed to take no action against Southern Glazer’s for the conduct covered by the investigation. The company said the investigation primarily concerned activities that occurred years ago and involved former employees who circumvented its compliance controls and policies, including through fraudulent documentation submitted using third parties.

Southern Glazer’s said it cooperated fully with authorities and accepted responsibility for the conduct and compliance failures acknowledged in the agreement.

“This conduct does not reflect Southern Glazer’s values, culture, or standards and it will not be tolerated,” CEO Wayne Chaplin said.

The federal government credited Southern Glazer’s with making significant changes to its compliance program.

According to the company and the federal agreement, Southern Glazer’s increased and reorganized compliance staff, adopted new policies and procedures, expanded monitoring and auditing, and strengthened internal enforcement.

The investigation was conducted jointly by TTB and IRS Criminal Investigation with support from the Treasury Executive Office for Asset Forfeiture, according to the Justice Department.

TTB said the case demonstrates the potential liability distributors face not only for actions taken directly by employees but also for illegal conduct carried out on their behalf by third parties.

The investigation centered on practices governed by federal alcohol trade regulations intended to preserve the independence of wholesalers and retailers. Federal law prohibits certain commercial bribery practices that threaten the independence of alcohol trade buyers.

Southern Glazer’s is the largest U.S. distributor of wine and spirits, according to the federal statement of facts, and employs more than 24,000 people nationwide.

The family-owned company said it has operations in 47 U.S. markets and Canada, along with brokerage operations in the Caribbean and Central and South America. Southern Glazer’s plans to adopt the Southern Glazer’s Beverage Company name companywide in 2027.

Do not miss any content from Distribution Strategy Group. Join our list.

The post Southern Glazer’s to Pay $12.5 Million to Resolve Federal Bribery Investigation appeared first on Distribution Strategy Group.